The Finance Ministry has approved a loan of Rs 2903.80 crore to eight states to increase capital expenditure. Out of this, Rs.1393.83 crore has been released to these states. In April, the Finance Ministry had announced the Special Assistance Scheme for Capital Expenditure in the States for the current financial year. Under the special assistance scheme, the central government will give Rs 15,000 crore as loan in the current financial year to all the states for capital expenditure. The central government will not charge any interest from the states on this loan and this loan will be given for 50 years. Under this special assistance, an amount of Rs 2,903 crore was approved for eight states.
These eight states include Bihar, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Punjab, Sikkim and Telangana. The objective of the government is to increase the expenditure on infrastructure projects of the states so that along with helping in the speedy recovery of the economy, employment can also be created in the states. According to the Finance Ministry, under special assistance, Rs 831 crore to Bihar, Rs 282 crore to Chhattisgarh, Rs 200 crore to Himachal Pradesh, Rs 649 crore to Madhya Pradesh, Rs 522 crore to Maharashtra, Rs 45.80 crore to Punjab, 200 crore to Sikkim and Rs 200 crore to Telangana. 174 crore will be given.
In the last financial year also, such special assistance was provided to the states by the Ministry of Finance. During that period, 27 states had approved an increase of Rs 11,911.79 crore for capital expenditure, of which Rs 11,830.29 crore was released.
Extended period for re-export of imported containers
The Central Board of Indirect Taxes and Customs (CBIC) has decided to extend the deadline for re-export of imported containers lying at domestic ports by another three months. The aim is to address the problem of shortage of containers for export. At present duty free import of containers is allowed with the condition of re-export during the next six months. To avoid such import duty, companies export empty containers. Such activities are adding to the problem of shortage of containers for export.
Seeing the demand of traders in this regard, CBIC on Saturday asked its field officers to give three months more time for re-export of imported containers lying at domestic ports. Significantly, due to the Kovid-19 epidemic, there has been an increase in freight rates and a decrease in the number of containers globally. The export community has repeatedly raised the issue of shortage of containers, as it affects exports.